d. The applicant shall be bound by and liable to indemnity a bank against all obligations and responsibilities imposed by foreign laws and usages.
ARTICLE 38 Transferable Credits a. A bank is under no obligation to transfer accredit except to the extent and in the manner expressly consented to by that bank. b. For the purpose of the article: Transferable credit means a credit that specifically states it is “transferable”. A transferable credit may be made available in whole or in part to another beneficiary (“second beneficiary”) at the request of the beneficiary (“first beneficiary”). Transferring bank means a nominated bank that transfers the credit or, in a credit available with any bank, a bank that is specifically authorized by the issuing bank to transfer and that transfers the credit. An issuing bank may be a transferring bank. Transferred credit means a credit that has been made available by the transferring bank to a second beneficiary.
ARTICLE 38 (Contd…..) c. Unless otherwise agreed at the time of transfer, all charges (such as commissions, fees, costs or expenses) incurred in respect of a transfer must be paid by the first beneficiary. d. A credit may be transferred in part to more than one second beneficiary provided partial drawings or shipments are allowed. A transferred credit cannot be transferred at the request of a second beneficiary to any subsequent beneficiary. The first beneficiary is not considered to be a subsequent beneficiary. e . Any request for transfer must indicate if and under what conditions amendments may be advised to the second beneficiary. The transferred credit must clearly indicate those conditions.
ARTICLE 38 (Contd…..) f. If a credit is transferred to more than one second beneficiary, rejection of an amendment by one or more second beneficiary does not invalidate the acceptance by any other second beneficiary, with respect to which the transferred credit will be amended accordingly. For any second beneficiary that rejected the amendment, the transferred credit will remain unamended. g. The transferred credit must accurately reflect the terms and conditions of the credit, including confirmation, if any, with exception of: the amount of the credit, any unit price stated therein, the expiry date, the period for presentation, or the latest shipment date or given period for shipment, any or all of which may be reduced or curtailed. The percentage for which insurance cover must be effected may be increased to provide the amount of cover stipulated in the credit or these articles.
ARTICLE 38 (Contd…..) h. The first beneficiary has the right to substitute its own invoice and draft, if any, for those of a second beneficiary for an amount not in excess of that stipulated in the credit, and upon such substitution the first beneficiary can draw under the credit for the difference, if any, between its invoice and the invoice of a second beneficiary.
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- Summer '16
- Md. Nahid Hossain
- Bill of lading